Cyprus Tax Benefits for Greek Cypriots Living in the U.S.

If you are a Greek Cypriot living in the United States, you may be eligible to enjoy significant tax advantages by establishing personal or business ties with Cyprus. Cyprus has built a reputation as a reliable and tax-efficient jurisdiction within the European Union, making it an attractive destination for expatriates, investors, and entrepreneurs alike.

In this comprehensive guide, the legal team at E CHATZIDIMITRIOU LLC explains how you can benefit from Cyprus’ favorable tax regime and what steps are necessary to remain compliant with both Cypriot and U.S. tax laws.

Why Cyprus Appeals to the Greek Diaspora

Cyprus offers an ideal environment for Greek Cypriots living abroad who wish to maintain economic, family, or business connections with their homeland. Whether your goal is to open a business, invest in property, or retire, Cyprus provides legal and tax frameworks that support diaspora engagement.

Highlights of Cyprus’ Tax System:

• Corporate tax rate of only 12.5%

• Non-domiciled (non-dom) status for tax exemptions

• No inheritance tax

• Wide network of double taxation treaties

• EU-compliant and English Common Law-based legal structure

Understanding Non-Dom Status in Cyprus

What is Non-Domiciled Status?

Cyprus allows individuals who were not tax residents for 17 of the past 20 years to apply for non-domiciled (non-dom) status. This status provides robust tax exemptions for income earned both in Cyprus and abroad.

Key Benefits of Non-Dom Status:

• 0% tax on dividends and interest

• No Special Defence Contribution (SDC)

• No tax on capital gains, except for Cyprus real estate

• No wealth or inheritance tax

This status is ideal for Greek Cypriots who live abroad and want to maintain limited or passive income links to Cyprus without incurring significant tax liabilities.

Tax Planning for Cyprus-Based Companies Owned by U.S. Residents

If you’re considering forming a company in Cyprus while residing in the U.S., Cyprus offers a range of advantages:

• Low 12.5% corporate tax rate

• Dividend distributions to non-dom shareholders are tax-free

• No withholding tax on dividends paid to foreign shareholders

• Access to Cyprus’ IP Box regime with an effective tax rate as low as 2.5% for qualifying intellectual property income

• Deductible expenses and incentives for R&D and innovation activities

The Cyprus–United States Double Taxation Agreement

The Cyprus–U.S. Double Taxation Treaty is a cornerstone of cross-border tax planning. It ensures that:

• You are not taxed twice on the same income

• You can claim tax credits for taxes paid in one country against the liability in the other

• You can clearly determine your tax residency under defined legal criteria

Understanding how to apply the treaty correctly can prevent costly mistakes and ensure peace of mind.

What Kind of Income Can Be Exempt in Cyprus?

Under the Cyprus tax regime, the following types of income can be exempt (depending on residency and non-dom status):

• Dividends and interest income from abroad

• Royalties from intellectual property rights

• Capital gains (excluding gains from the sale of real estate in Cyprus)

• Certain employment income for newcomers or returning expatriates under special rules (e.g., 50% income tax reduction for high earners)

How E CHATZIDIMITRIOU LLC Can Help

Our law firm provides full legal and tax support for Greek Cypriots living in the U.S. We offer:

• Legal analysis of your eligibility for non-dom status

• Preparation and submission of relevant tax applications

• Strategic tax structuring for individuals and companies

• Support for residency and company formation procedures

• Ongoing compliance guidance with Cyprus and U.S. tax rules

U.S. Phone: +13474034789

Email: info@hatzidimitriouvirtuallaw.com

Website: https://hatzidimitriouvirtuallaw.com

Language of communication: Greek

Online meetings available

We represent clients across Cyprus and Greece, offering flexible legal solutions tailored to diaspora needs.

E CHATZIDIMITRIOU LLC – Serving the Global Greek and Cypriot Community with Legal Excellence.